· Two single administrations of Diamyd™, four weeks apart, demonstrated safety and efficacy in slowing the decline of C-peptide levels after a stimulated meal at 15 months.

· Diamyd™ treated patients required less insulin than placebo patients.

· Diamyd™ treated patients with a disease duration shorter than 3 months showed an improved insulin production.

· Diamyd™ offers a compelling, first in class, therapeutic for beta cell preservation in type 1-diabetes, in particular due to ease of use and patient acceptance.

As announced previously, the results from the Diamyd™ study demonstrated that the group of 35 recently diagnosed type 1-diabetes patients that received Diamyd™ experienced on average only half the decline in meal stimulated insulin, as measured by C-peptide levels (Area Under the Curve) 15 months after the first treatment as compared to the placebo group (p=0.01). As insulin and C-peptide are produced in equal amounts and C-peptide is easier to measure, meal stimulated C-peptide levels is the most important parameter to follow in a type 1-diabetes study where the aim is to preserve beta cell function. C-peptide levels in both groups experienced a decline but the decline was significantly inhibited in the Diamyd™ group. There were no significant differences in fasting C-peptide levels between the two groups

· The relative insulin requirements in the Diamyd™ treated group increased less than in the placebo group compared on a percentage basis (p=0.05).

· There was no difference in HbA1c levels between the Diamyd™ group and the placebo group. This is consistent with type 1-diabetes patients striving to reach normal blood glucose levels through their standard insulin treatments.

· There was a tendency of increased GAD antibody levels in the Diamyd™ group compared to the placebo group indicating that the drug candidate has an immunomodulating effect.

· Although subgroups were too small for statistical calculations, Diamyd™ treated patients with a disease duration of less than 3 months (n=4) showed improved C-peptide levels at 15 months, whereas placebo treated patients (n=7) showed a decline.

These results provide strong support that the administration of Diamyd™ is effective in preserving islet cell function in type 1-diabetes patients. Additionally, maintenance of endogenous insulin production is important as it helps patients to better control their disease and reduce long-term complications.

Finally, as in all previously reported clinical studies with Diamyd™, the results also strongly support the safety of Diamyd™ administration. There were no serious adverse events reported that were related to the Diamyd™ treatment.

The study is now in a follow up stage of 15 months. The Clinical Trial Report from this study is currently in preparation.

"With these positive results in the type 1-diabetes study, the likelihood that the ongoing Phase II Clinical Trial with 160 LADA-patients will be successful has increased", says Anders Essen-Moller, President and CEO of Diamyd Medical. Preliminary results from the LADA trial are planned to be presented in the summer 2007.